OUTsurance, a short-term insurer, expects full year profits to surge up to 45% backed by strong earnings growth in its Australian operations Youi.
- The company expects group earnings to increase between 35% and 45% for the year to June 2023 from 2,316 cents per share in 2022.
- Earnings in Youi business are expected to jump between 220% and 250% from 413 cents per share last year, making it the division with highest growth.
- The significant increase in Youi’s earnings is attributed to premium growth, lower natural peril claims due to favourable weather and higher investment income due to rising interest rates.
- In the previous year Youi faced multiple weather events and lower investment income due to low interest rates.
- South African short-term and life divisions are likely to increase up to 10% and 15% respectively.
- OUTsurance has conducted a strategic review of its OUTvest business and concluded that a restructuring, including potential disposal, is necessary.
- The insurer said client investments and obligations will continue without disruption.